Intel (INTC) shares gained on Monday after the chipmaker announced lower expense guidance for the year, reflecting its recent sale of a majority stake in its programmable chip unit, Altera.
The move signals tighter cost control and a renewed focus on Intel’s core businesses.
Key Points
- Intel finalized the sale of a 51% stake in Altera to Silver Lake for $3.3 billion.
- Full-year 2025 adjusted operating expenses were cut to $16.8 billion, down from $17 billion.
- The transaction boosts cash reserves and streamlines operations, though Intel still faces stiff competition in chips and foundry services.
Altera Sale Strengthens the Balance Sheet
Intel confirmed it has completed the sale of 51% of Altera, its field-programmable gate array (FPGA) business, to private equity firm Silver Lake. The deal values Altera at $8.75 billion, with Intel receiving $3.3 billion in cash while retaining a 49% minority stake.
For Intel, the divestiture means a leaner structure. Altera contributed about $816 million in revenue during the first half of 2025, but it also carried $356 million in operating costs. By removing these expenses from its books, Intel is improving its financial profile without significantly damaging profitability.
Intel confirmed it has completed the sale of 51% of Altera, its field-programmable gate array (FPGA) business, to private equity firm Silver Lake. The deal values Altera at $8.75 billion, with Intel receiving $3.3 billion in cash while retaining a 49% minority stake.
For Intel, the divestiture means a leaner structure. Altera contributed about $816 million in revenue during the first half of 2025, but it also carried $356 million in operating costs. By removing these expenses from its books, Intel is improving its financial profile without significantly damaging profitability.
Cost Discipline Under CEO Lip-Bu Tan
As part of its restructuring, Intel lowered its adjusted operating expense forecast for fiscal 2025 to $16.8 billion, a modest but meaningful reduction from the prior $17 billion. The company also reaffirmed its 2026 expense target of $16 billion, underscoring its long-term cost discipline.
CEO Lip-Bu Tan, who took the helm earlier this year, has been aggressively reshaping operations, including monetizing non-core assets and tightening capital spending. The Altera deal fits squarely into this strategy, bolstering liquidity while allowing Intel to concentrate on CPUs, GPUs, and its ambitious foundry business.
As part of its restructuring, Intel lowered its adjusted operating expense forecast for fiscal 2025 to $16.8 billion, a modest but meaningful reduction from the prior $17 billion. The company also reaffirmed its 2026 expense target of $16 billion, underscoring its long-term cost discipline.
CEO Lip-Bu Tan, who took the helm earlier this year, has been aggressively reshaping operations, including monetizing non-core assets and tightening capital spending. The Altera deal fits squarely into this strategy, bolstering liquidity while allowing Intel to concentrate on CPUs, GPUs, and its ambitious foundry business.
Investors Cheer, But Challenges Remain
Shares of Intel climbed as much as 5.7% in early trading before settling to a gain of around 3.8%, trading near $25. That brings year-to-date gains to roughly 27%, as investors show cautious optimism about Intel’s turnaround.
Still, challenges remain. The company must prove it can close the technology gap with rivals like AMD (AMD) and NVIDIA (NVDA) in AI-driven chips, while also scaling its foundry operations to compete with industry giant TSM (TSM). Intel’s turnaround hinges not just on cutting costs, but also on driving innovation and customer adoption in its core markets.
Conclusion
Intel’s sale of a majority stake in Altera and its trimmed expense forecast offer investors reassurance that management is serious about cost discipline and streamlining operations. While the move is a positive step in stabilizing the business, the road ahead will require strong execution in chip design and foundry services to reestablish Intel as a market leader.
Intel’s sale of a majority stake in Altera and its trimmed expense forecast offer investors reassurance that management is serious about cost discipline and streamlining operations. While the move is a positive step in stabilizing the business, the road ahead will require strong execution in chip design and foundry services to reestablish Intel as a market leader.
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